what is the difference between secured credit cards and unsecured credit cards?
This is for a bankruptcy form in which I need to list the secured and unsecured creditors. I don’t know which ones to list where.
A secured credit card is one that you have to pay a prepaid amount according to the limit.
For example: "XYZ credit card issuer tells you that you do not qualify for a low interest rate or any rate credit card because you do not have good, or enough credit at all to qualify. Instead they tell you, they will issue you a $500.00 credit card by you paying the $500.00 up front. So you are actually using your credit card with money already there. So then you when you go use your $500.00 limit card they are going to deduct if from the $500.00 you have on hand with them if you do not send in the money.
You essentially have the money already paid to them they just going to deduct from the money they have if you do not send in payment"
An unsecured credit card is one that has no prepaid amount and has an interest rate. They gonna make a killing off you when you just pay the minimum balance, and your credit that you worked so hard to build up is going to take a fall when you start making late payments.
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Secured creditors are items that somoene else hold the title to until you finish paying for it. Your house and car are the first two, and then any other items that someone else holds the title to such as a boat, motorhome. Unsecured lines or credit are hospital bills, credit card debt and store charge accounts..
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A secured credit card is one that you have to pay a prepaid amount according to the limit.
For example: "XYZ credit card issuer tells you that you do not qualify for a low interest rate or any rate credit card because you do not have good, or enough credit at all to qualify. Instead they tell you, they will issue you a $500.00 credit card by you paying the $500.00 up front. So you are actually using your credit card with money already there. So then you when you go use your $500.00 limit card they are going to deduct if from the $500.00 you have on hand with them if you do not send in the money.
You essentially have the money already paid to them they just going to deduct from the money they have if you do not send in payment"
An unsecured credit card is one that has no prepaid amount and has an interest rate. They gonna make a killing off you when you just pay the minimum balance, and your credit that you worked so hard to build up is going to take a fall when you start making late payments.
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